The Kerala Domestic Solar Prosumers Community has demanded the complete withdrawal of the revised Renewable Energy Draft Regulations 2025 and sought urgent intervention of the State government for the formulation of a new policy by an expert committee.
If the new draft regulations come into force, the renewable energy generation sector in Kerala, built with the participation of ordinary citizens, will be completely disrupted, said Jameskutty Thomas, Coordinator of KDSPC, representing over 3,000 domestic rooftop solar prosumers in the State.
There are several shortcomings in the draft regulations published by the Kerala State Electricity Regulatory Commission, which according to him violate existing central laws and policy guidelines, including those in the Electricity Act and MNRE directives.
While other States are progressing by ensuring public participation in the decentralised renewable energy sector, he told reporters here that Kerala’s new regulations are designed to impose additional financial burdens on investors.
However, according to the published draft law, by eliminating energy banking from one month to the next and adjusting solar power for night time consumption through a “normalisation factor,” significant losses will be incurred. The methodology of this “normalisation factor” has not yet been explained to the public, he said.
Although the draft states that existing solar prosumers will not be affected, a “grid supporting charge” of ₹1 per unit for electricity supplied to the grid will deter new consumers from entering this sector, he added.
If these draft regulations are enacted into law, the entire solar industry will collapse. The anticipated decline in the demand for rooftop solar installations will adversely affect local installers, vendors and service providers leading to significant job losses in the solar installation and maintenance sectors. This will have an impact on the government revenue from GST and other taxes from the sale and services of solar systems, which is estimated at approximately ₹600 crore, he said.
KSEB’s claim of a ₹500 crore loss due to prosumers is baseless and without any audited data, details or regulatory approval. There are no published studies or verifiable information available to justify their claim of cross-subsidy losses, he said.
Published on July 21, 2025
https://www.thehindubusinessline.com/economy/keralas-solar-prosumers-seek-revision-of-renewable-energy-draft-regulations-2025/article69837829.ece
